Real Estate Loans Receivable

6 Months Ended

Jun. 30, 2018

Mortgage Loans on Real Estate, Commercial and Consumer, Net, (Investment Based Operations Presentation) [Abstract]

Real Estate Loans Receivable

Real Estate Loans Receivable

Please see Note 2 to the financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2017 for discussion of our accounting policies for real estate loans receivable and related interest income. 

The following is a summary of our real estate loan activity for the periods presented (in thousands):

	Six Months Ended
	June 30, 2018										June 30, 2017
	Triple-net			Seniors Housing Operating		Outpatient Medical		Totals			Triple-net			Outpatient Medical			Totals
Advances on real estate loans receivable:
Investments in new loans	$	8,281		$	11,806	$	7,022	$	27,109		$	10,037		$	—		$	10,037
Draws on existing loans	21,182			—		—		21,182			40,680			—			40,680
Net cash advances on real estate loans	29,463			11,806		7,022		48,291			50,717			—			50,717
Receipts on real estate loans receivable:
Loan payoffs	58,557			—		—		58,557			97,039			60,500			157,539
Principal payments on loans	32,870			—		—		32,870			798			—			798
Sub-total	91,427			—		—		91,427			97,837			60,500			158,337
Less: Non-cash activity(1)	—			—		—		—			(61,337		)	(60,500		)	(121,837		)
Net cash receipts on real estate loans	91,427			—		—		91,427			36,500			—			36,500
Net cash advances (receipts) on real estate loans	$	(61,964	)	$	11,806	$	7,022	$	(43,136	)	$	14,217		$	—		$	14,217

⁽¹⁾ Triple-net represents acquisitions of assets previously financed as real estate loans. Please see Note 3 for additional information. Outpatient medical represents a deed in lieu of foreclosure on a previously financed first mortgage property.

In 2016, we restructured real estate loans with Genesis HealthCare and recorded a loan loss charge in the amount of $6,935,000 on one of the loans as the present value of expected future cash flows was less than the carrying value of the loan.  In 2017, we recorded an additional loan loss charge of $62,966,000 relating to real estate loans with Genesis HealthCare based on an estimation of expected future cash flows discounted at the effective interest rate of the loans. At June 30, 2018, the allowance for loan losses totals $68,372,000 and is deemed to be sufficient to absorb expected losses related to these loans.  At June 30, 2018, we had no real estate loans with outstanding balances on non-accrual status and recorded no provision for loan losses during the six months ended June 30, 2018.

The following is a summary of our impaired loans (in thousands):

	Six Months Ended
	June 30, 2018		June 30, 2017
Balance of impaired loans at end of period	$	214,871	$	289,473
Allowance for loan losses	68,372		5,811
Balance of impaired loans not reserved	$	146,499	$	283,662
Average impaired loans for the period	$	252,172	$	327,324
Interest recognized on impaired loans(1)	8,847		16,464

⁽¹⁾ Represents cash interest recognized in the period since loans were identified as impaired.